Remittances to Mexico continue record-breaking trend

Mexican families received a record high of US $48.3 billion from abroad during the period from January to October. The number represents an increase of 14.6% over the same period last year, data from the Mexican central bank showed on Thursday.

The figure also marks 30 months of sustained increase with highs recorded in May ($5.142 billion), June ($5.144 billion) and September ($5.3 billion). In October alone, the number of remittances was US $5.35 billion — 11.25% more than the amount of US $4.81 billion registered in the same month of 2021.

In total, 124 million operations were registered between January and October, mostly electronic transfers.

Remittances, mainly from Mexican migrants in the United States, represent the country’s second-largest source of foreign revenue after automotive exports. It also accounts for more than the Mexican agricultural sector, which contributes 3% to the gross domestic product.

In a study conducted by the Wilson Center, Mexico ranked as the third-largest recipient of remittances in 2021 behind China and India. A whopping 94% of remittances come from the U.S., with California, Texas and Minnesota being the largest sending states.

At a time when President López Obrador is struggling to grow the economy, data from the Center for Latin American Monetary Studies (CEMLA) shows that nearly 4.9 million Mexican families and some 11.1 million adults receive remittances from their relatives abroad.

López Obrador has often boasted about the strong growth in remittances sent to Mexico and has called all 38 million Mexicans in the U.S. “living heroes” for the money they send back home. Before year-end, the President forecasts remittances to reach US $60 billion and has expressed trust that remittances will help lift the country’s economy, which registered a contraction of 8.2% in 2020 and a recovery of 4.8% in 2021.

Remittances are often sent once a month to Mexican households, an income that is mainly destined to food, clothing, and family health care. Other expenses of remittances include purchase of land, payment of debts, education expenses for household members and housing or household goods.

With reports from Swiss Info and Bloomberg

Have something to say? Paid Subscribers get all access to make & read comments.
Mexican President Claudia Sheinbaum and US President Donald Trump

Under pressure from Trump on cartels, Sheinbaum turns spotlight on US drug use

0
Responding to Trump's call for Mexico to do more against cartels, Sheinbaum posed a pointed question of her own about drug use, money laundering and weapons north of the border.
A crocodile relaxes in the sun on Playa Bocanegra in Puerto Vallarta, Jalisco, Mexico

As Puerto Vallarta grows, officials weigh crocodile relocation plan

0
Moving the reptiles is only a possibility at this point, but the discussion has arisen after weeks of increased sightings, a fatal croc attack, and 11 dead crocodiles, at the very least two of them at the hands of human beings.
Mulege BCS, site of a new CFE solar/green hydrogen project

CFE’s ‘Project Oasis’ aims to bring solar power to an energy-challenged region of Baja California Sur

0
The project could be something of a breakthrough not only for residents of the Mulegé zone but for the nation, as the CFE takes a step toward alternative solutions such as green hydrogen and energy storage.
BETA Version - Powered by Perplexity